Spheria Emerging Companies Declares 3.8c Quarterly and 1.3c Monthly Dividends

Spheria Emerging Companies Announces Dividend Transition

Spheria Emerging Companies Limited (ASX, SEC) has revealed a strategic shift in its dividend payment schedule, moving from quarterly to monthly distributions. The company declared a fully franked quarterly dividend of 3.8 cents per share for the December 2025 quarter, payable in February 2026. Alongside this, it will pay two additional fully franked monthly dividends of 1.3 cents per share each in February and March 2026, marking the initial steps towards monthly dividend payments starting April 2026.

Dividend Details and Reinvestment Plan Changes

The quarterly dividend is calculated based on the company’s post-tax net tangible assets (NTA) of $2.512 per share as at 31 December 2025, applying a 1.5% yield. The monthly dividends are derived by dividing this quarterly rate into three equal instalments. Notably, the dividend reinvestment plan (DRP) will remain available only for the December quarterly dividend and will be suspended for the monthly dividends, reflecting a significant change in shareholder options.

Portfolio Performance and Market Positioning

The company’s investment manager, Spheria Asset Management, acknowledged a relatively weak quarter performance, attributing it to an underweight position in the materials sector, particularly gold, which outperformed strongly. This sector surge favoured momentum-driven and commodity-linked stocks, while many industrial and technology holdings lagged despite solid fundamentals. Despite this, the portfolio remains focused on attractively valued businesses with improving cash flows and strong balance sheets, positioning SEC to benefit as market leadership broadens beyond speculative sectors.

Financial Health and Future Outlook

Since its IPO in December 2017, SEC has paid total dividends amounting to 79.4 cents per share. The company’s franking account stood at $5.1 million as of 31 December 2025, sufficient to support 19.7 cents per share in fully franked dividends. The Board has committed to monitoring dividend policy closely in response to prevailing market conditions, signalling a cautious but adaptable approach to shareholder returns.